Skip to site content
Insights and Trends

The Impact Prolonged Length of Stay has on Hospital Financial Performance

At the end of 2022, 68% of hospitals were projected to operate at a financial loss due to barriers with inflation, rising operational costs and ongoing clinical labor shortages.1

In 2023, financial performance will remain a top priority for health leaders. However, the lack of qualified clinical labor is causing many hospitals to delay patient discharge – leading to longer average lengths of stay (ALOS) in multiple care settings and a backlog of patients requiring comprehensive care.

If not addressed, these barriers will continue to push the financial envelope for hospitals and ultimately lead to decreased outcomes, higher care cost and an increase in readmission risk across the care continuum.

ALOS Challenges

Recent data shows that the ALOS in hospitals has increased 19.2% across the board for patients in 2022 compared to 2019. For patients being discharged to post-acute care providers the increase is more pronounced — rising 24% from 2019 to 2022.2

So, although ALOS continues to rise year-over-year, hospitals are left with less resources than ever before – forcing them to bear the burden of added costs due to the additional staff and resources required to care for these patients.

Finding the Solution

To help mitigate the costs of caring for patients experiencing prolonged LOS and to make sure they are getting the most appropriate care possible, many hospitals are seeking external support from a specialized partner.

Partnership, whether it be joint-venture or contract management, can provide substantial value to a hospital and its care team. The right partner will have access to experts skilled at locating and hiring specialized talent to help alleviate staffing concerns. They can also provide the necessary training and continuing education to help deliver high-quality care to their patients.

Partnership can remove barriers and help hospitals improve their ALOS, the financial performance across their care continuum and most importantly the quality of care provided to their patients.

To learn more about the financial benefits of partnership, read our white paper or contact us today.


  1. The current state of hospital finances: Fall 2022 update. American Hospital Association. (2022). Retrieved January 20, 2023, from
  2. New AHA report finds delays in ability to discharge patients increase strain on patients and hospitals: AHA. American Hospital Association. (2022, December). Retrieved January 20, 2023, from

We use cookies to make our site work. We also use cookies and other tracking technology to measure our site’s performance, personalize content and provide social media features, including through advertising and analytics partners (such as Meta/Facebook and Google). By using our site, you agree that information about your use of the site may be sent to and/or collected by these third parties, and further agree to our website Privacy Policy.